Strategic Aspect of Mergers & Acquisition on Human Resource

To achieve competitive advantage, Mergers and Acquisitions has become a strategic opportunity for organizations. An exceptional amendment has been witnessed in India in recent years, due to the liberalization by the govt. of India. This study investigate the impact of Mergers and Acquisitions on the employee’s job motivation and job satisfaction, psychological and behavioral impact The analysis witnessed unsatisfying level of job security and motivation and psychological behavioral aspects among workers who worked post Mergers and Acquisitions. The paper talks about the impact of Mergers and Acquisitions on Human Resource that is often unnoticed. It talks about the advantages & disadvantages of Mergers and Acquisitions. Though M&A are seen as tools to boost business in today’s international marketplace, they have a low success rate, probably as a result of the main target has been on financial and legal problems instead of the human factors.
Introduction Merger & Acquisition
Mergers and Acquisitionss (M & A) are thought-about as a comparatively quick and economical appreciation to expand into new markets and incorporate new technologies. Still, we will notice several evidences that their success is by no means assured. On the contrary, a majority of M & A appear short of their expressed aims and objectives. On the contrary a substantial range is often derived, that has neglected those factors that are associated with human resources problems and activities. There are varied studies that put together the requirement for companies to constantly address a spread of human resource problems, activities, and challenges in their merger and acquisition activities. The post-merger integration method could be a troublesome and complicated task. It comes along side long lists of activities and tasks that have to be done like formation of latest groups and departments.
Human Resource: Key concern
It is reported that one among the most reasons for failure of a merger or acquisition is predicated on Human Resources neglect. Human Resource problems are the prime sensitive area, usually unnoticed in merger and acquisition. Once a call is taken to merge or acquire, a corporation analyses the feasibleness on the business, money and legal fronts, however fails to acknowledge the importance hooked up to the human resources of the organizations concerned. Corporations that do not acknowledge the importance of human resources within their organizations and their role in the success of integration are bound to fail in the long run.